Crypto Arbitrage
Crypto arbitrage allows traders to exploit inefficiencies in the market. It is a surprisingly simple concept with opportunities cropping up many times a day. Read on to find out the meaning of cryptocurrency arbitrage, its benefits, risks and the useful tools available to help generate profits.
Crypto Brokers
#1 - eToro USA
eToro US leads the way in cryptocurrency trading. 1% fee for buying or selling crypto added to the spread (from 0.75% for BTC), with their own wallet service and the largest number of cryptos to trade in the market. eToro copy trading is only for cryptos. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
"eToro is a top pick for users looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."
- DayTrading Review Team
- Crypto Spread: BTC 0.75%
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $10
- Regulator: SEC, FINRA
eToro USA Crypto Coins
eToro USA offers trading on at least 26 crypto coins: AAVE, ALGO, BAT, BCH, BTC, COMP, DASH, DOGE, ENJ, EOS, ETC, ETH, FLR, LINK, LTC, MANA, MATIC, MIOTA, MKR, NEO, SHIBxM, UNI, XLM, XTZ, YFI, ZEC
Stocks Trading
Trade popular US stocks and ETFs with zero commissions while fractional shares and options are also available. The eToro Academy and excellent market research are also huge bonuses for newer investors.
About eToro USA
eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.
Pros
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
- The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
- A free demo account means new users and prospective traders can try the broker risk-free
Cons
- Narrower range of instruments than some competitors
- No MetaTrader 4 platform integration
#2 - NinjaTrader
Trade micro Bitcoin futures with low fees and leading charting tools. Get exposure to Bitcoin through CME Group's centralized exchange with robust risk management tools.
"We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools."
- DayTrading Review Team
- Crypto Spread: Floating
- Crypto Lending: No
- Platforms: eSignal
- Crypto Staking: No
- Minimum Deposit: $50
- Regulator: NFA, CFTC
NinjaTrader Crypto Coins
NinjaTrader offers trading on at least 1 crypto coin: BTC
Forex Trading
NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
Stocks Trading
Stocks can be traded by connecting the NinjaTrader platform to supporting brokers. You can then take positions on large public companies and household names via advanced trading software.
About NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
Pros
- Widely respected and heavily authorized by the NFA and CFTC
- Easy account opening that takes a few minutes
- Excellent trading software for active users with bespoke widgets and indicators
Cons
- Non forex and futures trading requires signing up with partner brokers
- Withdrawal fee on some funding methods
- Premium platform tools come with an extra charge
#3 - OANDA US
Speculate on the world's biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Clients can spot trade cryptocurrencies on Paxos's itBit exchange through the OANDA platform via OANDA’s partnership with Paxos. Users can trade digital currencies in a few taps through the iOS and Android mobile app.
"We recommend OANDA for US traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick if you want a heavily regulated broker with a secure trading environment."
- DayTrading Review Team
- Crypto Spread: $100
- Crypto Lending: No
- Platforms: MT4, TradingView, AutoChartist
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: NFA, CFTC
OANDA US Crypto Coins
OANDA US offers trading on at least 8 crypto coins: AAVE, BCH, BTC, ETH, LINK, LTC, PAXG, UNI
Forex Trading
OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
Pros
- Feature-rich app with 50 indicators, 11 drawing tools and 9 charting styles
- Industry-leading platforms including MT4 and TradingView
- Transparent pricing structure with no hidden charges
Cons
- Customer support not available on the weekend
#4 - IG Group
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- Crypto Spread: Variable
- Crypto Lending: No
- Platforms: MT4, AutoChartist, TradingCentral
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
IG Group Crypto Coins
IG Group offers trading on at least 10 crypto coins: ADA, BCH, BTC, DOGE, DOT, ETH, LINK, LTC, UNI, XLM
CFD Trading
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Stocks Trading
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
Pros
- IG offers great educational materials including an extensive library of training and support on how to day trade successfully
- Share dealing and ISAs are available for longer term investing
- Opening an account takes less than 5 minutes
Cons
- No copy trading platform
- Inactivity charge
#5 - Uphold
Buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using a straightforward mobile app or through Uphold's browser-based account homepage. Uphold clients can also earn up to 13% APY by staking one or more out of 32 valid tokens, or send their tokens to an external wallet.
"Uphold provides a convenient one-stop option for investors who want a quick and straightforward way to access crypto markets. It will also serve users looking for crypto staking facilities."
- DayTrading Review Team
- Crypto Spread: 0.5% to 1% average
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: Yes
- Minimum Deposit: $0
- Regulator: FCA, FinCEN
Uphold Crypto Coins
Uphold offers trading on a large number of coins, at least 96 coins. For example: AAVE, ADA, ALCX, ALGO, API3, ATOM, AUDIO, AVAX, AXS, BAL, BAT, BCH, BTC, BTCO, CAKE, CHR, DAO, DYDX, ETH, GHST, GLMR, GODS, INH, LSK, NMR, REQ, ROOK, TRB, XRP, XYO
Stocks Trading
Speculate on large US stocks including Tesla, Amazon, Alibaba and Apple. Uphold also offers equities that will appeal to ESG investors, helping it to stand out from competitors.
About Uphold
Uphold is a cryptocurrency trading app that allows users to buy, trade and transfer digital assets including 230+ crypto tokens. The app's trading environment also allows crypto staking, trading between various company stocks, and provides users with a debit card that provides rewards and easy multi-currency payments.
Pros
- Useful extra features including a debit card that provides cashback on purchases and fee-free foreign currency transactions
- Supports wallet-to-wallet crypto transfers
- Earn returns on dozens of tokens through crypto staking
Cons
- Identity verification required to access all features
- Limited charting and analysis options compared to specialist exchanges and platforms
- Weak regulatory oversight
#6 - Coinmama
Buy, hold and sell 16 crypto tokens including major players like BTC and ETH and lesser-known tokens such as LRC. Use a range of fiat currencies to buy the digital assets, including USD. Cryptos are stored in third-party wallets.
"New crypto investors looking to buy and sell popular tokens like Bitcoin with fiat currency will appreciate Coinmama. We particularly rated the loyalty program as a way to reduce fees."
- DayTrading Review Team
- Crypto Spread: From 2.93% to 3.90%. Express fees of 0-5.00% also apply.
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $30
- Regulator: FinCEN, FINTRAC
Coinmama Crypto Coins
Coinmama offers trading on at least 9 crypto coins: BCH, BTC, DOGE, ETH, LINK, LTC, UNI, XRP, XTZ
About Coinmama
Coinmama is a popular cryptocurrency exchange that aims to provide streamlined and user-friendly cryptocurrency trading options to the retail market. Traders can buy a range of tokens via a fiat on-ramp, store their tokens in a third-party wallet and earn loyalty bonuses for trading with Coinmama. Millions of clients from over 180 countries have signed up to the firm.
Pros
- Straightforward to use for beginners
- Save on fees and commissions with larger deposits
- Diverse methods to buy crypto with fiat including e-wallets, SEPA, bank transfers and SWIFT
Cons
- High commissions from 2.93% for the highest tier account
- No direct crypto trading – clients must first purchase BTC or ETH
- Limited wallet compatibility vs MetaMask
#7 - Nadex
Nadex offers a limited list of cryptos with just Bitcoin and Ethereum. Traders can go long or short though with straightforward binary options contracts that mean you don't need to own the underlying token.
"Users looking to trade short-term binary options with a US-regulated broker will find a good platform in Nadex."
- DayTrading Review Team
- Crypto Spread: Variable
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $250
- Regulator: CFTC
Nadex Crypto Coins
Nadex offers trading on at least 2 crypto coins: BTC, ETH
Forex Trading
Speculate on 11 popular currency pairs via Knock Out contracts, call spreads and binary options. Nadex offers a wider range of timeframes than most binary options brokers, with contracts spanning from intraday to weekly.
Stocks Trading
Speculate on a handful of global indices via binary options contracts, including the S&P 500 and FTSE 100. There are low commissions and traders can see fixed payouts and risk levels before opening a trade.
About Nadex
Nadex is a renowned exchange and binary options provider, based in the US. The company is fully regulated by the CFTC and offers options, call spreads and Knock Out contracts. Nadex also has just a $1 entry or exit fee and a user-friendly platform and proprietary app.
Pros
- A range of timeframes that will suit both short and longer term strategies
- US regulated exchange with excellent trust score
- Free demo account for new users
Cons
- No welcome bonuses or financial incentives
- No MT4 or MT5 platform integration
- Products and tools are more advanced than some alternatives
#8 - IQCent
IQCent offers 17 crypto assets through its own platform, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is limited to 1:10 while binary options payouts vary by token but are competitive.
"IQCent will appeal to newer traders who want a platform where they can trade both binary options and CFDs with copy trading support and regular contests."
- DayTrading Review Team
- Crypto Spread: Variable
- Crypto Lending: No
- Platforms: TradingView
- Crypto Staking: No
- Minimum Deposit: $250
- Regulator: IFMRRC
IQCent Crypto Coins
IQCent offers trading on at least 3 crypto coins: BTC, ETH, LTC
CFD Trading
IQCent CFDs are available on forex, stocks, indices, commodities and cryptos with leverage variable by asset to a maximum of 1:500, which is higher than many alternatives. 24/7 customer support is also available to assist new users.
Forex Trading
IQCent traders can access CFDs or binary options on 40+ forex pairs, including majors, minors and exotics. CFD spreads start from 0.7 pips and binary options payouts are decent up to 95%. Trading takes place through the broker's proprietary platform with advanced analysis tools.
Stocks Trading
IQCent offers CFDs and binaries on four German stocks: Lufthansa, Deutsche, Daimler and BMW. Traders can also speculate on stock markets via seven leading indices including US30, S&P500 and FTSE100.
About IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring traders.
Pros
- Regular technical and fundamental analysis published
- $0.01 minimum stake for newer traders
- Bonuses available up to 100% for Gold account members
Cons
- Poor selection of stocks with just four equities
- A short period before an inactivity fee is charged
- No MetaTrader 4 platform
#9 - Kwakol Markets
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Crypto Spread: From 0.8 pips (Standard Account)
- Crypto Lending: No
- Platforms: MT4, MT5, AutoChartist
- Crypto Staking: No
- Minimum Deposit: $1
- Regulator: ASIC, FINTRAC
Kwakol Markets Crypto Coins
Kwakol Markets offers trading on at least 6 crypto coins: BCH, BNB, BTC, ETH, LTC, XRP
CFD Trading
CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.
Forex Trading
Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds through the ECN model and competitive spreads. On the negative side, not all currency pairs are available on MT4.
Stocks Trading
Trade stocks with zero commissions and ultra-fast trade executions. Clients get exposure to US, EU, Asian and Russian stock markets on both the MT4 and MT5 platforms. Stocks are available as CFDs, so users will not own the underlying shares.
About Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
Pros
- Excellent market analysis tools
- Full range of investments with 1000+ assets including cryptos
- Demo account available
Cons
- The only base currency is USD
- Regional restrictions in certain countries
- High deposits for premium features
#10 - Webull
Webull offers trading on popular cryptos like Bitcoin against the US Dollar. With 35+ tokens and premium analysis tools, traders can review market trends and identify opportunities in a few taps.
"Webull is best for traders looking to buy and sell stocks on a user-friendly app with zero commissions."
- DayTrading Review Team
- Crypto Spread: Floating
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: SEC, FINRA
Webull Crypto Coins
Webull offers trading on a large number of coins, at least 43 coins. For example: ADA DASH, ALGO, ATOM, AVAX, BAT, BCH, BTC, CRV, DOGE, EOS, ETC, ETH, FTM, GRT, LINK, LRC, LTC, LUNA, MANA, MATIC, REM, SHIB, SISHI, SOL, TRX, UNI, XLM, XMR, XTZ, ZEC
Forex Trading
Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
Stocks Trading
Webull offers a fantastic list of 2000+ US stocks, fractional shares, options, ETFs, OTC, and ADRs. There is no commission on stocks, ETFs, and options. Full extended trading hours is available while custom screeners and watchlists aid the decision making process.
About Webull
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous bonuses have made the discount broker popular with online investors.
Pros
- No minimum deposit for beginners
- Promotions with free stocks
- Fractional shares
Cons
- Day trading is limited for customers with less than $25,000 deposited
- High deposit and withdrawal wire fees for non-US residents
- Sometimes sudden changes in trading conditions
What Is Crypto Arbitrage?
Cryptocurrency arbitrage is a specific form of financial arbitrage that capitalises on crypto volatility, liquidity and decentralisation. Arbitrage trading is a strategy that takes advantage of market inefficiencies and price differences across different markets and/or assets. Specifically, it looks carefully at the rates offered by exchanges to find ways to make a profit by quickly trading in a loop.
Different exchanges will have different numbers of buyers and sellers, different trading preferences and different specialisms. This helps ensure that some inconsistencies occur between spot rates for different markets or instruments, such as Bitcoin.
Types Of Crypto Arbitrage
Spatial Crypto Arbitrage
Perhaps the simplest and most common method is spatial arbitrage. This involves looking at one instrument on two different exchanges. If these exchanges list the crypto at different prices, traders can buy from the cheaper exchange and immediately sell from the more expensive one, instantly making money from the discrepancy.
The easiest way to do this is to buy, let’s say Ethereum, from one exchange, transfer it to another and then sell it. Unfortunately, this is inefficient, both taking extra time to complete the transfer and incurring additional charges.
To avoid this issue, traders can hold their fiat currency in one exchange and their crypto in the other. When the opportunity presents itself, the same buy and sell order can be placed at the same time across the two exchanges. This would give the trader additional fiat currency while maintaining the same crypto capital. This method performs trades without transferring from one exchange to another, taking less time and incurring fewer fees.
Triangular Arbitrage
Triangular crypto arbitrage is a little more complex, involving three trades instead of two, all of which are usually carried out on the same exchange. This method looks at three different cryptos, trading through each of them until you are back to the original asset.
For example, a trader might spot an opportunity in Bitcoin and Ethereum exchange rates. They could then exchange their Bitcoin for Ethereum, which could then be traded for Ripple and finally back to Bitcoin. If the spot rates are inconsistent, the trader could end up with more Bitcoin than they had initially owned, despite trading around a loop.
Flash Loan Arbitrage
A slightly trickier form of crypto arbitrage, flash loan arbitrage, takes advantage of the advanced technology behind altcoins and lending approaches. Flash loans are instant cryptocurrency loans that allow traders to borrow large amounts of digital coins without any collateral. This presents a lending arbitrage opportunity to take advantage of differences in interest rates by flash loan providers.
Other Arbitrage Methods
Arbitrage goes beyond the strategies explained above, providing opportunities to traders both inside and outside of the altcoin world. Crypto derivatives arbitrage works in the same way as those, though it uses securities and derivatives of digital currencies, rather than the tokens themselves. One method that is common among hedge funds is to buy cheap stocks of companies before a merger when the market is inefficient and unsure.
Benefits Of Crypto Arbitrage
Fast Profits
Crypto arbitrage stands above many trading strategies in how quickly profits are realised. Exploiting the price inconsistencies over such short periods means that profits are made as soon as the transactions and trades have gone through.
Opportunities
Cryptos provide a wide range of arbitrage opportunities. With over 500 exchanges and more than 4,000 cryptocurrencies around the world, the likelihood of altcoin arbitrage opportunities presenting themselves is huge.
Volatility
One of the reasons for the popularity of cryptocurrencies in the trading world is the consistently high levels of volatility they demonstrate, even Bitcoin, which has been around for over a decade. The decentralisation and proof systems of cryptos help to ensure varying levels of supply and demand, keeping volatility high. This volatility is great for crypto arbitrage, as the more that prices change, the more likely it is that markets will show inconsistent rates.
Immaturity
The relative youth of cryptocurrencies and their development help create irregularities and disjointedness between exchanges as support networks are less well established. This increases the number of crypto arbitrage opportunities that are created.
Competition
While cryptocurrencies have shot up in popularity and fame, they are still traded significantly less than fiat currencies. This means that there is less competition for crypto arbitrage than there is for other, more popular financial instruments.
Price Differences
A major feature of crypto arbitrage versus regular arbitrage is the size of the price differences that appear. Digital currency inconsistencies tend to range from 3% to 5%, however, there are occasions when opportunities have been as large as 40%.
Risks Of Crypto Arbitrage
Regulation
While there are hundreds of crypto exchanges and thousands of currencies out there, some know your customer (KYC) regulatory restrictions may limit the number available to you. Some exchanges may require proof of identity or even an open bank account in that country before approving an account.
Fees
While it is a simple process to wrap your head around and try to calculate potential profits, fees could limit the profitability of arbitrage opportunities. Calculations should consider deposit and withdrawal fees, both in fiat and cryptocurrencies, as well as trading charges implemented by the exchange.
Security
While it is most profitable to store some assets on all your viable exchanges to reduce the overall time requirement, this can increase your security risk. Holding capital in many different wallets and accounts produces a larger risk of being hacked for at least one of them.
Volume Requirements
The relatively small profit percentages that are available with crypto arbitrage often mean that large amounts of capital are required for each opportunity to produce meaningful profits.
Timing
Crypto arbitrage opportunities are quick to appear and resolve. The short lives of these opportunities mean that traders must be on the ball to take advantage of them. This can be tricky, especially with the long transaction and verification times associated with crypto mining in some blockchains.
Crypto Arbitrage Bots
The need for low latency, calculations and trade placement can make crypto arbitrage a tricky business. Therefore, most traders have moved towards automated arbitrage, utilising bots (robots) and software tools to maximise their chances of success.
There are two routes that traders can go down with automated crypto arbitrage, purchasing a pre-made bot online or writing their own. There are many bots available on the internet, you may have heard of Dex Analysis. Each bot will have different specialisms and approaches, so traders should ensure they carry out detailed comparisons and fully understand the methods being implemented by a trading bot before entrusting their money to it. It is also a good idea to check reviews of arbitrage bots to check their returns are as stated.
For those Bitcoin traders who prefer to be more in control, all it takes is a little programming know-how and some time to develop your own bot. There are plenty of ‘how to’ guides and tutorials online for building trading bots and most crypto exchanges support APIs, which allow integration of home-written software. The development of a bot’s formula can be done relatively easily, with some capable of basing their actions on Excel spreadsheets and calculators.
Unfortunately, as is the way with all things, some resources online are a bit more malicious. Some trading forums, arbitrage signals providers and bots are attempting to take advantage of vulnerable traders. For example, the Crypto Arbitrage VIP software supposedly offers a 340% return, however, many reviewers have highlighted its illegitimate nature.
Crypto Arbitrage Software & Tools
Beyond the realm of automated trading bots, crypto arbitrage can be supplemented and aided with many other tools and pieces of software. Many companies offer a range of additional services, such as live charts, scanners and finders that monitor and screen opportunities, sending alerts to traders on helpful dashboards, such as the Telegram bot.
Crypto arbitrage can also be done without the use of a computer thanks to apps like Crypto Arbitrage Pro APK. These have in-built matrixes and calculators produced by experts that provide traders with a medium for checking opportunities wherever they go.
What To Look For In Crypto Arbitrage Platforms
An important consideration for prospective arbitrageurs is which platform would suit your needs. There is no objectively best crypto arbitrage website or platform, as every trader will have different needs, and there are many available.
While you could work over many general platforms, assessing profitability across several windows, this is a slow process. It is often better to find a platform that is connected to a range of platforms, allowing the much easier establishment of arbitrage opportunities.
The top platforms will also support automated arbitrage, either with dedicated APIs to support external bots or even built-in tools, trackers and auto trading bots that come with the platform.
To maximise profits, especially given the small margins of crypto arbitrage, traders should search for a platform with a range of deposit and withdrawal methods, as well as low fees. This allows traders to withdraw raw profits, instead of having to exchange again for withdrawable currencies.
Final Word On Crypto Arbitrage
Cryptocurrency arbitrage is an opportunity for traders unlike any other. Traditional arbitrage has been declining with better networks and tighter regulations. The decentralisation of cryptocurrencies such as Bitcoin, however, provides consistent volatility and opportunity for those who know where to look.
Whether on a single exchange or over hundreds of them, traders can carry out crypto arbitrage manually or with the help of robots. However, care should always be taken when capital is at risk; ensure to read reviews, understand what is being offered and maintain the security of funds to make sure that profits are not jeopardised.
FAQ
Does Crypto Arbitrage Work And Is It Profitable?
Crypto arbitrage can work; its popularity is not baseless. It is important, however, to ensure that all fees are considered in profit calculations and to understand that there may well be times when the opportunity will close too quickly to be exploited.
Is Crypto Arbitrage Legitimate?
Many people doubt the legality of crypto arbitrage; however, it is perfectly legal as traders are simply capitalising on inefficiencies in the market. This is also beneficial as it helps to close these discrepancies quickly, improving the efficiency of crypto markets.
What Is A Crypto Arbitrage Bot?
Bots are pieces of software that are written to automate processes that would otherwise be time-consuming and difficult. Bots are generally written in Python for cryptocurrency arbitrage and can be found on the internet, sometimes even for free. Bots are especially useful for crypto arbitrage as there is such a small timeframe of profitability.
Where Can I Learn About Crypto Arbitrage?
There are many guides online that lay out crypto arbitrage, its various strategies and the algorithms that bots are based on. Some websites, like Crypto University, offer training courses, calculators and helpful YouTube videos.
Can You Carry Out Crypto Arbitrage In Nigeria?
Yes, crypto arbitrage is available in all countries with access to crypto exchanges, whether local or abroad. For example, a Korean trader could use the internet to assess an opportunity between exchanges in India and South Africa, so long as they can open accounts there.